Every firm has an optimal capital structure, which is a mix of debt, preferred, and common equity that causes its stock price to be maximized. A value-maximizing firm will continually develop, understand and manage its capital structure. It will establish its optimal capital structure, use it as a target, and then raise additional capital in a manner that will keep the actual capital structure on target over time. The target proportions of debt and equity, along with the costs of those components, are used to determine the firms weighted average cost of capital, (WACC). Thoughts?

I don't need a thesis paper, just 7-8 lines from the above narratives.